This Annual Report details the Bank's activities in environment and natural resources during 2002. In 2002, the IDB engaged in the preparation of its Environment Strategy, which set forth guiding principles and general priority areas of action that the Bank used to promote through its financial and non-financial instruments. The Environmental Strategy also proposed specific actions for improving overall environmental performance in terms of the Bank's internal work and procedures. In addition, another highlight of 2002 was the approval of several operations to promote economic development and the sustainable management of natural resources in an integrated manner. Financially, 2002 was a challenging year for the region and the pattern of decreasing lending was reflected in the environment sector.